Hyundai Motor planning to sell stake in Hyundai Mobis
By Andrew C., 30 Aug, 2010. 0 Comments
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To comply with anti-trust rules, Hyundai Motor Co. is planning to sell its stake worth 231 billion won ($200 million) in partsmaking affiliate Hyundai Mobis. As part of conditions to merge Hyundai Mobis with Hyundai Autonet, Hyundai is seeking to act in accordance with fair trade regulations and is set to unload its entire 1.68 percent stake in Mobis. Earlier reports have quoted a Hyundai official to have said that South Korea's top automaker was planning to sell the Mobis stake in a block trade.
However, Hyundai officials said they were still checking on how to sell the stake. The report prompted a 4.26% rise in shares in Mobis to 147,000 won, ourperforming a 1.13 percent gain in the wider market. Hyundai Motor closed flat at 100,000 won.
Lee Sung-jae, an analyst at Kiwoom Securities, said that investors were anxious about an overhang issue related to the stake but confidence could go back if Hyundai sells the stocks in block deals. Hyundai acquired Mobis shares last June when Mobis absorbed sister company Hyundai Autonet, in which Hyundai Motor had a 16.77 percent stake.
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